This study examined line item funding for medical education in Ohio, both for general-purpose subsidies and for special programs intended to alleviate shortages of physicians in certain medical specialties and geographic locations. Spending by the State for all medical education in 1991 totaled $140.1 million. Four specific programs were funded: primary care, family practice, Area Health Education Centers (AHEC), and geriatric medicine. Information was gathered from existing literature, site visits to all seven Ohio medical schools, interviews with State college and hospital administrators, interviews with out-of-state representatives and experts from associations and providers, and general information from other states. Findings suggest that the State needs better information and accountability, clearer program direction, and more broadly based solutions to problems of supply and distribution of physicians. Recommendations include development of an overall policy on physician supply needs in relationship to enrollment policies; examination of the AHEC program's impact on physician supply and location; design of a uniform, statewide cost-allocation system for medical schools; and enactment of statutory language for all programs. Appendixes include a review of certain medical schools, a report on Ohio appropriations for physician training, excerpts from the Ohio Revised Code, a list of shortage areas for health professionals, and responses to the report. (Author/NAV)